Monday, February 11, 2013

The
Randolph-Sheppard Act (P.L. 74-732), as amended, was enacted to provide
individuals who are blind with remunerative employment and to enhance
their economic well-being. Through Randolph-Sheppard Act (R-SA) programs,
individuals who are blind and in need of employment are given priority in
the operation of vending facilities on federal property. Typically, individuals who
are blind and receive R-SA program contracts act as managers of vending
facilities, subcontracting with food service organizations that provide
meal and/or vending services on a day-to-day basis. Run by a state
licensing agency through the U.S. Department of Education’s state
vocational rehabilitation program, R-SA programs may also be labeled “business
enterprise programs” or “vending facilities programs.” R-SA programs are
not mandatory, though every state except Wyoming chooses to participate.

Since its inception, the R-SA has extended its reach beyond federal locations
to include state, county, municipal, and private installations. The 1974
amendments to the R-SA added cafeterias to its list of eligible “vending
facilities.” Congress, however, did not specify whether military mess
halls should be treated as “cafeterias” in the context of the R-SA. This issue
raised concerns about conflicts between the programs authorized by R-SA
and another program that addresses the employment of individuals who are
blind, AbilityOne. AbilityOne is a statutorily mandated procurement
program developed under the Javits-Wagner-O’Day Act (JWOD Act) that promotes employment
opportunities for persons who are blind or severely disabled. Two subsequent
federal court of appeals decisions have held that military troop dining
facilities are considered “cafeterias” under the R-SA and that the act
controlled over the JWOD Act, which also provides employment opportunities
for individuals with severe disabilities.

In Fiscal Year (FY) 2010, a total of 2,319 individuals who are blind operated
2,505 Randolph- Sheppard vending facilities, generating $792.6 million in
gross income, with average vendor earnings of $56,168. This report
provides a brief history of the R-SA programs and an explanation of how
the programs are structured. Next, detailed financial and operational data are provided—including
the number of program participants, their overall sales, and their earnings. Finally,
the report explores how the R-SA and the JWOD Act intersect or overlap. It
concludes with a discussion of legislation that was introduced in the 110th and 111th Congresses to reform or combine
the Randolph Sheppard and AbilityOne programs. No legislation was introduced in
the 112th Congress that addressed the R-SA
program or its discord with the AbilityOne program.

Date of Report: January 24, 2013
Number of Pages: 13Order Number: RL34609Price: $29.95

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